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Does the UK deficit need to be cut? watch

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    Does the deficit really need to be cut or is this as some leftwingers would say just tory propaganda to give excuss to destroy the benefits system, privatise the NHS, austerity and lower public spending?

    Why aim to reduce the deficit by cutting welfare as this only accounts for a small proportion of government spending?

    Are there millions of Britains being forced into poverty as a direct result of the governments welfare cuts?

    What of the IMF advising that we are foccusing too much on austerity measures and need to focus on growth, public spending and creation of jobs?

    http://socialistworker.co.uk/art.php?id=22774

    http://falseeconomy.org.uk/
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    Welfare is the single largest component of government spending by a long shot (when they're not bailing out banks). It does need to be cut as it's vastly overinflated, though maybe not as harshly as it is currently. Cracking down on tax avoidance and evasion can also save the Treasury billions a year.

    So in my opinion, its critical the deficit is cut otherwise tomorrow's generation and our generation will have a crippling amount of debt as a percentage of GDP
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    Well, Labour intended to bring the deficit down as well at a pretty fast pace. So either way the deficit would be getting reduced.
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    (Original post by Puzzzled)
    Welfare is the single largest component of government spending by a long shot (when they're not bailing out banks). It does need to be cut as it's vastly overinflated, though maybe not as harshly as it is currently. Cracking down on tax avoidance and evasion can also save the Treasury billions a year.
    Could you provide sources/figures?
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    (Original post by Solarstorm)
    Could you provide sources/figures?
    You could try googling 'Uk budget 2013' and clicking the first result or indeed wikipedia gives you the same information.
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    If the government need to destroy something then it's the DFID. (Department for International Development) - That would be a saving of 8 billion pounds.
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    (Original post by Puzzzled)
    Welfare is the single largest component of government spending by a long shot (when they're not bailing out banks). It does need to be cut as it's vastly overinflated, though maybe not as harshly as it is currently. Cracking down on tax avoidance and evasion can also save the Treasury billions a year.

    So in my opinion, its critical the deficit is cut otherwise tomorrow's generation and our generation will have a crippling amount of debt as a percentage of GDP

    Unforunately you're not going to make a huge impact on the welfare budget by cutting social security like the Tories are currently looking at-it currently stands at 3% of the total welfare budget and even other assorted benefits which can come with it (Though many also go to working families) only stand at 31% of the total.

    The biggest thing to cut back welfare would be to reduce or freeze the pension and the assorted benefits which come with getting old. IMO the pension should be frozen and the age at which you get it raised to 70.

    On the general question the answers mixed; yes we need to cut back the deficit but its not an urgent priority and its close to impossible without growth. What we should be doing is investing at the moment and cutting back where we can-including the NHS, school funding and the military. The important thing is getting growth going-we can worry about everything else later.
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    (Original post by JonathanNorth)
    If the government need to destroy something then it's the DFID. (Department for International Development) - That would be a saving of 8 billion pounds.
    Rubbish. Two things;

    a) As one of the worlds richest countries we have a moral duty to help out those less fortunate than ourselves-and 8 billion is a tiny amount to spend overall.

    b) The money we spend on ID more than recoups itself through the the technology it helps develop, how it helps develop less mature economies (and thus boosts global growth), through reputational boosts to the UK, through money to UK companies and NGOs which boost growth at home (around 95% of the UK aid contracts go to British companies) and through opening up new economies to British companies. An active aid policy is nesscary for us to find new markets and to open up other countries-look, for example, at what China is doing in Africa.
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    Worth a watch. Historian david starkey on austerity from a historical perspective. So yes. The deficit needs to be cut..... And it would also indicate that Keynesian economics isn't that great either.

    https://m.youtube.com/watch?v=GSd_Ld6X6O8
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    (Original post by nexttime)
    You could try googling 'Uk budget 2013' and clicking the first result or indeed wikipedia gives you the same information.
    £30 billion a year on debt repayments. That's nearly as much as we spend on defence.

    for anybody wondering about the deficit, whilst we have one we have to waste money on debt repayments that could be better used elsewhere.
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    "As of Q4 2012 the national debt amounted to £1,347.4 billion, or 88.7% of total GDP". Yes our debt does need to be cut...
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    (Original post by WharfedaleTiger)
    Rubbish. Two things;

    a) As one of the worlds richest countries we have a moral duty to help out those less fortunate than ourselves-and 8 billion is a tiny amount to spend overall.
    When our economy is not in a state of stagnancy, then yes, I agree with you.

    But right now, the government is making proposals to cut the NHS by a tiny fraction that won't even touch the budget deficit with any significance. That £8 billion we are giving away to other countries does not benefit us at-all. We could also argue that the £8 or so billion that's being spent will have massive interest on it (Like all UK debt currently), so that is also pilling on debt into our economy.

    (Original post by WharfedaleTiger)
    b) The money we spend on ID more than recoups itself through the the technology it helps develop, how it helps develop less mature economies (and thus boosts global growth),
    Sources? Those are very bold claims.

    (Original post by WharfedaleTiger)
    through reputational boosts to the UK, through money to UK companies and NGOs which boost growth at home (around 95% of the UK aid contracts go to British companies) and through opening up new economies to British companies.
    So essentially we are funding private businesses in other countries? Also, if you could give a source on your "around 95% of the UK aid contract go to British companies" that would make your argument more coherent.

    (Original post by WharfedaleTiger)
    An active aid policy is nesscary for us to find new markets and to open up other countries-look, for example, at what China is doing in Africa.
    If you want to take China as an example, they have purely INVESTED with their private companies and not with public money. So far, if memory serves me right they have 2,000 private companies in Africa. If there is a demand for something, who other than the Chinese are able to fill that demand?
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    David Starkeys take on it from a historical perspective.

    http://www.youtube.com/watch?v=GSd_Ld6X6O8
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    Of course it needs to be brought down, but not by slashing public services.

    The government has recently spent £2bn buying drones from Israel. We are STILL in Afghanistan, rail companies are bailed out whenever their profits are lower than expected, the foreign aid budget is obscene when we have people in poverty here.

    And the big elephant in the room... the EU.
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    (Original post by A Mysterious Lord)
    Of course it needs to be brought down, but not by slashing public services.

    The government has recently spent £2bn buying drones from Israel. We are STILL in Afghanistan, rail companies are bailed out whenever their profits are lower than expected, the foreign aid budget is obscene when we have people in poverty here.

    And the big elephant in the room... the EU.
    Watch the You tube clip I posted earlier. It may throw some light onto it.

    We haven't slashed public spending at all. We've slowed the growth rate of public services. Spending on public spending is continueing to go up but it's only 3% now a year and not 10%

    Your drone numbers are 2 billion since 2006 so that works out at £300 Million a year. (Still cheaper than manned aircraft though so it can be seen as a cost saving.)

    Afghanistan is about £1.2 Billion a year.

    So Combined, that's £1.5 Billion. That equates to 1.2% of the NHS budget or 4 days.

    Spending is being cut across the board but the NHS is ringfenced.
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    The deficit needs to be eradicated, not just cut. The deficit isn't debt, it's the increase in debt, of which we already have plenty. In other words, debt is what we take from our children, and deficit is how little we care because we're taking on more.
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    (Original post by Hopple)
    The deficit needs to be eradicated, not just cut. The deficit isn't debt, it's the increase in debt, of which we already have plenty. In other words, debt is what we take from our children, and deficit is how little we care because we're taking on more.
    But we have an electorate who don't seem to care about that and politicians that pander to their needs in order to stay in power. There's a reason why the Torys get the name the Nasty party.

    To quote a great Scot. Alexander Fraser Tytler.

    'A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury.'
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    (Original post by A Mysterious Lord)
    Of course it needs to be brought down, but not by slashing public services.

    The government has recently spent £2bn buying drones from Israel. We are STILL in Afghanistan, rail companies are bailed out whenever their profits are lower than expected, the foreign aid budget is obscene when we have people in poverty here.

    And the big elephant in the room... the EU.
    Rail companies don't get "bailed out" in the way you think. What the government do is simply take over the franchise and the rail operator pays a fine effectively.

    We need to merge and means test all benefits (including pensioner benefits).
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    (Original post by Rakas21)
    Rail companies don't get "bailed out" in the way you think. What the government do is simply take over the franchise and the rail operator pays a fine effectively.

    We need to merge and means test all benefits (including pensioner benefits).

    If its cost effective to means test. In many cases it costs more to means test than it saves but I agree.

    but you need to remember means readying is a lot like re appraising disability benefits. It saves a lot of money, but those against it wheel out somebody in a wheelchair and try and initiate a guilt trip.
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    (Original post by MatureStudent36)
    If its cost effective to means test. In many cases it costs more to means test than it saves but I agree.

    but you need to remember means readying is a lot like re appraising disability benefits. It saves a lot of money, but those against it wheel out somebody in a wheelchair and try and initiate a guilt trip.
    If a benefit costs more to means test then it should be merged with another, one of the failures of our benefits system is that we have so many different types.
 
 
 
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